+95 (0)1 386 395 | Scipio Services - foreign-managed, locally-partnered Facility Management, Security and Real Estate Services in Myanmar.

Commercial Real Estate in Yangon, Myanmar

Seeking Office Space in Yangon, Myanmar?

Contact Us Now Before You Begin Your Search





captcha


2013-02-06 16.15.46

2013-02-06 16.19.24

DSC02869

mdllogotransparent200

To view and lease properties in Myanmar, visit Myanmar Deals Leasing.

We’ve found a 6-17% difference between the advertised price per square foot and the evaluated actual price per square foot when comparing commercial office space in Yangon, Myanmar. Maintenance fees, electricity and other utilities installations and fees, association fees, generator operation fees, can add considerable expense to your office.

At Scipio Services, we offer bespoke consultancy and real estate advisory services to your organization as you seek to enter the emerging Myanmar market. Our consultants have years of experience in Myanmar who work with you to locate your commercial office space then residential properties.

Descriptions of Commercial Properties

Below we’ve provided information and answers to topics and commonly asked questions when seeking commercial real estate in Myanmar:

Of course this is a complex question better suited for an in-person consult but for your initial estimation we’ll provide figures:

Advertised rate per year Actual rate per year Interior construction costs
Grade A $70.00 – $100.00 per sq. ft. $76.00 – $117.00 per sq. ft. $55.00 – $90.00 per sq. ft.
Grade B $42.00 – $78.00 per sq. ft. $44.00 – $92.00 per sq. ft. $35.00 – $75.00 per sq. ft.
Grade C $16.00 – $36.00 per sq. ft. $17.00 – $42.00 per sq. ft. $25.00 – $45.00 per sq. ft.
Grade A: Sole-purposed commercial office space within the notable business towers, or prominent locations of Yangon. These office buildings are known for accommodating organizations that seek a prominent identity.

Grade B: Office space within a mixed-use building or a sole-purposed building of smaller size containing fewer facilities, less than ideal location, or are lacking in maintenance.

Grade C: Functional space within a mixed-use or residential building that has been converted to office space; generally lacking facilities like a reception, common areas, or maintenance.

Sole-purposed commercial office space in Yangon is limited, few world-class business towers exist, and hotels which formerly occupied offices have been opting to convert back to renting nightly rooms as leases come due. The result is a fierce competition for the organizations that must operate to a level of premiere identity, and business towers demanding a premium rate with sometimes extraneous fees. Organizations that choose not to afford the business towers have opted to find second tier hotels, or they have taken large walled residences. The movement to large residences has put an added stress on the available residential market.
Payment terms vary for commercial one-year leases because the business towers structure these terms as a way to compete for occupants. That being said, the equivalent terms are normally 50% down payment or paid in advance. A three month security deposit is normal but also varies, and some properties charge a 13th month whereas others charge an inflated cost per square foot or maintenance and electricity fees.

The most important consideration is the difference between the advertised price per square foot (sq. m) and the evaluated actual price per square foot (sq. m) when making a decision. We’ve found the actual rate per square foot to be 6%-17% higher than the rate advertised.

A lease is normally structured by one or two agents/brokers; with one representing and marketing on behalf of the seller and the other representing the buyer. In almost all instances a prospective occupant must work through an agent/broker. Sometimes, the occupant will never meet the landowner except to sign to the lease agreement and transfer the payment. The standard residential fee to a prospective occupant is a 13th month.
Real estate in Yangon is currently a seller’s market. A 2012 report by Myanmar Survey Research showed the price of land in Yangon increased nearly five-fold from 2002 to 2011, though informal analysis of the market for corporate offices and expatriate residences seems to indicate that actual prices increased even more aggressively in the last 18 month period.
A few large residential and commercial projects have been announced to break-ground in the coming months that could relieve some of the stress on supply, but these projects are advertising completions by 2015 and in the meantime only a few office conversions from retail space have provided relief.

On the demand side, organizations from the Asian region are ratcheting up their involvement and western organizations are increasingly stepping in ever more frequently as we approach 2015. Given the current near-exponential trend in market rates, we expect prices to continue their trend upward for commercial and even more so for residential at an alarming rate until 2015; though this is largely dependent upon the continued diplomacy, reform process, security situation, and 2015 elections.

mdllogotransparent200

To view and lease properties in Myanmar, visit Myanmar Deals Leasing.

Back to Top